 Although comfortably ensconced as the oldest, biggest and most profitable bank in the country, First Bank of Nigeria plc was not about to rest on its laurels as the 21st century loomed. Snapping at its heels was a pack of lean and hungry rivals, including various foreign and new generation banking competitors with enticing new technologies and services that could lure away its customers.
Intent on remaining "truly the first" in Nigeria, First Bank embarked on a four–year enterprise transformation project in 2000, appointing Accenture as its transformation partner. This was a logical choice as Accenture had previously worked with First Bank of Nigeria on a highly successful organisational change project that started in 1996 to ready the bank to deliver high performance in a rapidly liberalising market. Already 102 years old in 1996, First Bank of Nigeria had faced and met many changes since its establishment. After being the only commercial bank in Nigeria for several decades, the bank had weathered the "banking explosion" between the 1930s and 1950s, followed by a flurry of consolidations in the 1980s and then yet another industry growth spurt in the early 1990s when Nigeria deregulated the banking sector. The dust had settled slightly by 1996, when an industry shake-up had reduced the number of banks in Nigeria from 126 to around 50. Even so, First Bank of Nigeria had read the writing on the wall and decided it had better adapt, and fast, to the demands of an aggressively competitive marketplace. This motivated the launch of the initial organisational change project with Accenture in 1996. That project, which saw the bank reinventing its vision and strategic direction for the 21st century, produced solid results. In 2000, First Bank of Nigeria was the undisputed market leader, ranked first in terms of deposit base, gross earnings and profitability. But fresh challenges were surfacing. The market had changed significantly, competitors were catching up and technological advancement was offering new opportunities—and threats. First Bank of Nigeria asked Accenture to conduct a strategic assessment of its operations. Targeting Modernisation and Growth
Accenture's strategic assessment highlighted two main areas at the bank that were in need of transformation. One was the need to modernise technology, skills and infrastructure. At the time, the bank was still using mainly manual processes and had little connectivity between its 314 branches—hardly surprising given Nigeria's patchy telecommunications infrastructure. The bank was also relying heavily on brick–and-mortar branches to serve customers, and services such as electronic banking and automatic teller machines were simply not available. The second critical area that Accenture identified was the need to find and aggressively pursue growth opportunities so that the bank could sustain its number one position in the marketplace. This project started off with Accenture drawing up a blueprint to define the bank's future operations. After approval from the bank's board and top management, the project moved into the implementation phase, with collaborative Accenture-First Bank of Nigeria project teams focusing intensively on modernisation. Among others, manual processes were automated, clearing systems upgraded, production and backup Data Centres created, IT management redesigned and new banking applications selected and implemented. Major milestones included the launch of the Bank's internet banking service, branded First Bank Online, the opening of 100 automatic teller machines and the introduction of One Branch Banking by connecting close to 100 branches. While modernising the First Bank of Nigeria's operations, the project teams also pressed ahead in positioning them for new growth opportunities, emphasising value-adding activities rather than conventional commission in turnover (a percentage commission charged on withdrawals on current accounts on a monthly basis). In 2004, the bank became the first MasterCard service provider in Nigeria and signed an interconnect agreement with Cards Technology Ltd., enabling it to provide real-time commercial services to other banks in the region. Sustained Innovation
The improvements have not gone unnoticed by the bank's customers or its shareholders. First Bank of Nigeria remains the country's No. 1 bank and, where its return on assets was a mere 2.9 percent in 2000, it has since climbed to 5.4 percent. Return on earnings have been even more impressive, rising from just under 49 percent in 2000 to almost 105 percent. For the time being at least, competitors have been outpaced. In late 2004, First Bank of Nigeria was judged the best bank in Nigeria and seventh in Africa by The Banker, a publication of the Financial Times of London. Nevertheless, First Bank of Nigeria still refuses to be complacent. Aware that sustained high performance depends on sustained innovation, the bank is a firm believer in the importance of succeeding in today's markets while positioning for the future—in other words, in managing for tomorrow as well as for today. Accenture refers to this as "competitive essence," a characteristic of high-performance businesses identified through research involving hundreds of organisations across the globe. Expect more from First Bank of Nigeria–its journey towards sustained high performance is far from over. To Top |